Noting that “recent incidents” of sexual assault had “cast a dark shadow” on the country’s liberal credentials — a reference to the brutal gang rape of a 23-year-old physiotherapy student in the capital — Mr. Chidambaram outlined several proposals aimed at improving the safety and self-sufficiency of women.

Among them is a proposal to set up India’s first state-run women’s bank, for which the finance minister suggested setting aside 10 billion rupees (around $185 million.) Speaking to reporters in New Delhi, Mr. Chidambaram said the idea behind a women’s-only bank was to create employment opportunities and facilitate funding for women.

Many, including members of the opposition, welcomed this move. Television footage showed Sushma Swaraj, a senior leader of the main opposition Bharatiya Janata Party, clapping vigorously in support of the proposal.

Meera Sanyal, who heads the India operations of the Royal Bank of Scotland, called the proposal a “novel idea,” saying it would help aspiring women entrepreneurs and marginalized women’s groups. It “will help increase their contribution to the Indian growth story,” she said in a statement.

For Jagi Mangat Panda, the managing director of Ortel Communications, the announcement was a “path breaking” moment in the year’s budget.

But some commentators voiced skepticism, questioning what difference a women-only bank could make and noting that women have bigger things to worry about.

“We can’t stop rapes, crimes against women. But we want to open a bank for women. As if women can’t use normal banks,” Pritish Nandy, a former lawmaker, said on Twitter.

“ Aren’t we doing perfectly fine going to [a bank] where men also bank?” asked business columnist Shaili Chopra in a post on Twitter.

Some felt the move was populist, aimed at attracting female voters ahead of federal elections in May next year.

For Kiran Bedi, a former cop-turned-activist, the “women bank was populism.” She noted that there are already a dozen cooperative banks that finance women’s groups in India.

The finance minister expects to obtain necessary permits and licenses for the bank by October this year. In addition to a state-run women’s bank, the 2013 budget sanctions over 971 billion rupees ($17 billion) for women-focused programs, including a 10 billion rupee fund ($185 million) aimed at improving women’s safety. He called the fund “Nirbhaya,” or “fearless,” the name given by the media to the victim of the gang rape in December last year.

For most people, there isn't any change in the income tax rate, but there are tweaks for the super-rich, and for those in the lowest tax bracket. For instance, individuals with an annual taxable income of more than 10 million rupees will have to pay a so-called surcharge, which effectively pushes their tax rates to around 34% from the current 30.9%. Shown, men watched a live telecast of Mr. Chidambaram's budget speech outside the Bombay Stock Exchange, in Mumbai, Thursday.
Indranil Mukherjee/Agence France-Presse/Getty Images…

The finance minister promised an additional 10 billion rupees to cover any unexpected costs for a pending food security law, a proposal which aims to provide food grain at throw away prices to nearly 70% of Indians. Shown, a fruit seller at a market in Hyderabad, Thursday.
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In his speech, the finance minister said Indians' passion for gold was one of the main contributors to the widening current account deficit, with greater foreign exchange outflows than inflows. India is the world's biggest consumer of gold. Shown, a jewelry showroom in the southern Indian city of Kochi, Kerala, Feb. 25.
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Initiatives to support employment intensive sectors like textiles, leather and small and medium enterprises were also proposed, a move hailed by industry experts. Shown, a boy arranged saris, a traditional Indian garment, in Hyderabad, Nov. 30, 2012
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Other than setting up a 10 billion rupee or $185 million fund aimed at improving women's safety, the finance minister proposed to set up a state-run women's-only bank, a move aimed at encouraging self-sufficiency of women. Shown, a flash mob in support of women's safety in New Delhi, Feb. 14.
Anindito Mukherjee/European Pressphoto Agency…

Foreign mobile handsets costing more than 2,000 rupees or $37, will become more expensive after India's finance minister increased the import tax on them to 6% from 1%. Shown, a man takes a video of spiritual leader The Dalai Lama on his phone in the eastern Indian city of Bodhgaya, Bihar, Jan. 7, 2012.
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Taxes imposed on locally-produced sports utility vehicles, high-end motorcycles and luxury cars are also set to rise. Shown, Mahindra & Mahindra Ltd.'s SUVs parked in a factory in the western Indian town of Chakan, Maharashtra, Feb. 6.
Bloomberg News…

Smokers, too, will have to pay significantly more for their cigarettes, with excise duty increasing by 18%. Shown, a man smoked a cigarette in a fruit market in Hyderabad, Feb. 28, 2012.
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New Delhi plans to spend up to 2.03 trillion rupees or $37.7 billion on defense next year, up from a revised 1.78 trillion rupees this year. Shown, Indian Air Force pilots fly in formation during a training session in the western indian city of Pokhran, Rajasthan, last week.
Manan Vatsyayana/Agence France-Presse/Getty Images…

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